Britain yesterday released guidelines for the world's strictest anti-bribery legislation, which affects UK companies operating in Hong Kong and on the mainland.
The UK parliament passed the 2010 Bribery Act last April, which affects not only British firms but any company that conducts any part of its business in the country, as well as those that provide services to British companies. It goes into effect in July.
Until the British law was passed, the United States had the strongest anti-corruption legislation in the world in the shape of the Foreign Corrupt Practices Act, or FCPA, which bans the bribery of foreign officials. The UK's new law goes further, by also outlawing commercial bribes.
UK firms may also be liable for acts of bribery by a third-party service provider, such as an agent or contractor, if the bribe was to get business, keep business, or gain a business advantage for its UK client.
'One of the key issues that companies confront in Asia, and especially in China, is the use of agents, consultants and third-parties,' said Gary Seib, a partner at Baker & McKenzie in Hong Kong who heads the Firm's Global Dispute Resolution Practice.
Firms can defend themselves against bribery charges if they can show that they have 'adequate procedures' in place to prevent bribery.
